Where to begin. Ok. How about in the middle.
Our economy took a major downturn due to the over-inflation of housing prices in the market. Predatory lending to get high risk borrowers into homes allowed people who, quite frankly, had no business getting into a loan they could not afford. So it all collapsed around us.
Just prior to that, our wise government saw a slowing of the economy and took measures to try and reinvigorate it. They sent out somewhere around $172 billion dollars. Of course, we didn’t have that kind of money so we borrowed it.
Where did the money go? Of course, America is a nation if users, so the checks went there. I, personally, maximized my gift at $2400 dollars. In fact, of the total sum, 87% was geared to the consumer and 13% to producers. Why is that a factor?
Follow me as I reenact exactly what the guys at EuroPac have said.
Our economy is way larger than China’s, roughly five times as big. However, China just released $600 billion to their economy for aid, which is about four times what we did. Since they are smaller, this had the same effect as if we would have dumped $3 trillion dollars into our economy. That is a staggering 17 times our paltry $172 billion .
So what, you may ask?
Well, as it turns out, the vast majority of the Chinese stimulus is geared toward their producers of goods. It allows infrastructure development so that Chinese production remains highly competitive in the global market. Basically, they are helping their country to MAKE MORE GOODS TO SELL TO THE AMERICANS WHO ARE WASTING THE MONEY BUYING CRAP THEY DO NOT NEED.
As well, and this is personal opinion, I imagine that a lot of folks did what I did with the first stimulus. I stashed some in the bank and used some to pay a bill. A bill that will still be there next time, that I always pay, and which does nothing to help the economy.
America needs to stop consuming like greedy, starving idiots and get back to what makes the economy strong; start producing quality goods so we, too can remain competitive.
I just wish our congressional leaders would learn to speak a little Chinese. We would all be a bit better off for it.
The revolution is at hand. Will you be a leader or a follower?